Cramer: I 'Gave Up' on Oracle, Buying Facebook

Jim Cramer said his charitable trust sold its position in Oracle this week, "throwing in the towel" on the stock, while adding to its position in another name: Facebook.

Oracle on Thursday reported it missed expectations for software sales and subscriptions for the second straight quarter, sending its shares plunging as investors worried CEO Larry Ellison may have trouble getting the technology giant back on track.

Oracle executives the same day forecast new software sales and subscriptions will rise 0 percent to 8 percent this quarter, blaming weakness in the past quarter on disappointing sales in Asia and Latin America.

"My advice to Larry Ellison is that no man is an island," Cramer said Friday on "Squawk on the Street". "This is one my charitable trust gave up on last night. You can't take it anymore."

"This was a disappointing quarter, we've owned it, we did some selling in it. Threw in the towel, it was just enough," Cramer said. "There are enough companies that are doing well."

On the purchase of the stock for his charitable trust, Cramer said that he "couldn't have been more wrong on Oracle. Maybe this is the big turn, but that's what I thought last time. That was incorrect."

"They are obviously executing very poorly," he said, noting later in the show that competitors Salesforce.com and SAP are executing much better.

In the tech space, Cramer is bullish on Facebook, adding to the position in his charitable trust. His thesis is around the value of Facebook's video strategy, the must-use perspective from advertisers and an implied market bias in the wake of the company's botched IPO last year.

"This company's IPO destroyed any sort of positives that could come from the actual business. It's like a scab that keeps being picked," Cramer said. "My charitable trust bought it because I actually looked at the fundamentals."

"Everyone lost money on the stock so it's going to take a long time to come back," he said. "I'm telling you the business is good, my trust would never buy a stock if business was bad. My trust sells stocks when business is bad."